Hedge Funds to the Rescue: National City

In what has to be galling to the many hedge fund critics, the nation's hedge funds are rescuing the country's ailing financial system.  After the overblown hysteria directed at hedge funds in the past two years we have discovered that our main line banks, not our hedge funds, are the financial institutions that lost internal control over risk and are in distress.  The hedge funds, with capital, are riding to the rescue of the banks that are sorely in need of capital.  Without the hedge funds, the banks would either go under or suck up more government money in bailouts.  Unlike a government bailout, the hedge funds are providing need capital for profit -- they expect good returns.  The hedge fund returns come from the dilution of existing shareholders -- who should take a hit.  The National City cash infusion is a case in point.  Hedge funds put $7 billion in the bank, saving it from collapse.  The only issue is whether managers, who mismanaged the bank, sold to quickly and to the wrong bidder. Hedge funds are smart.  They show a paper profit after their weekend investment even though the stock dropped 28 percent yesterday (Monday) on the bank's announcement of first quarter losses.  The existing shareholders have lost big (84% from highs).  Where are the hedge fund critics now???